ED raids shell companies in 16 states for transferring Rs 500 & Rs 1000 notes during demonetisation

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Published: April 1, 2017 12:34:48 PM

The Enforcement Directorate on Saturday conducted searches 100 locations as a part of the crackdown on 300 shell companies across 16 states

ed raids shell companies, shell companies raided, ed raids, enforcement directorate raids, ed raids, sbi raids, demonetisation, note ban, 500, 100 banThe companies have been accused of transferring Rs 500 and Rs 1000 when the demonetisation drive was in effect. (Reuters)

The Enforcement Directorate on Saturday conducted searches 100 locations as a part of the crackdown on 300 shell companies across 16 states. The companies have been accused of transferring Rs 500 and Rs 1000 when the demonetisation drive was in effect. These 300 companies have also been accused of money laundering. It was reported that Enforcement Directorate officials investigated the matter and found that these 300 companies had been illegally transferring money during the note ban on Rs 500 and Rs 1000 notes. These raids by the Enforcement Directorate are considered to a part of Prime Minister Narendra Modi’s plan to root out corruption from the country. These shell companies are used by cash hoarders, and illegal businessmen in an attempt to convert black money into a taxable amount. Shell companies are known to be acting aliases for individuals or the other companies carrying business without the risk of having their identities revealed.

The ED, along with the CBI have been extremely vigilant during the entire tenure of demonetisation and had conducted raids in various parts of the country recovering a huge amount of unaccounted cash and gold among other things.In December, The ED had raided 50 banks on the grounds of hawala transactions and money laundering. An unnamed source had then told ANI that the ED was looking into every account which had suspicious transactions post demonetisation.

The ED was reported to be eyeing accounts with huge amounts of deposits at one time. The government had also released a statement in December saying that approximately Rs 2000 crore of undisclosed income had been admitted by taxpayers since Prime Minister Narendra Modi announced the demonetisation drive on November 8, 2016. The statement had further stated that the I-T department had investigated more than 400 such cases since the announcement and had managed to seize Rs 130 crore in both cash and jewellery. The Income Tax department had also revealed that most of the money that they had managed to seize had been in the new Rs 2000 notes.

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